Those facing foreclosure still need assistance

It is certainly encouraging that U.S. home prices jumped 11 percent in March compared to a year ago. That is the sharpest increase since April 2006.

However, that doesn’t mean everyone is out of the woods. Hundreds — perhaps thousands — of Oakland County residents still face mortgage and tax foreclosure.

Even in prosperous times people face tax foreclosure, notes Oakland Treasurer Andy Meisner.

It is often not due to anything inherently irresponsible. Many people just get caught up in it through no fault of their own.

In the case of tax foreclosures, where government has a role, there are ways to help people facing the loss of their homes.

And it is in everyone’s interest to prevent tax foreclosures when possible. Foreclosures of any variety negatively affect property values. The county lost $14 billion in taxable property value in recent years. Foreclosures bring periods of vacancy for properties where no doubt maintenance was already being neglected as owners struggled to stay in their houses.

That’s why doing everything possible to keep people in their homes helps everyone.

One way of assisting would be for the legislature to adopt House Bill 4409.

Under state law, unpaid property taxes become delinquent on March 1 following the tax year, and are forwarded to county treasurers for collection. After property becomes delinquent, unpaid taxes are subject to a 4 percent county property tax administration fee and interest at a non-compounded rate of 1 percent per month. On March 1 of the year after the property becomes delinquent, property with unpaid taxes is forfeited to the county treasurers, with unpaid taxes subject to additional interest at a non-compounded rate of .5 percent per month calculated back to the March 1 of the prior year when the property was returned delinquent.

This is very problematic for any owner wanting to redeem his or her property because it is a bill that has to be paid.

HB 4409 would allow — but not require — the county treasurer to waive the additional interest if the property is withheld from a petition for foreclosure due to financial hardship or certain other mitigating circumstances.

But folks facing tax foreclosure can get help long before that. They should first go to Meisner’s website (oakgov.com/treasurer) and see what’s available. They can call his office as well to set up a payment plan.

Right now, they can apply for help from the Step Forward Michigan loan rescue program. The program is making use of federal money available for all types of foreclosure prevention. Some $1 million from the program has already been designated to help Oakland County residents.

Now is not the time to take our eyes off the ball when it comes to foreclosure prevention. Encourage your lawmakers to vote for HB 4409.